Seaport Global Securities upgraded HB Fuller (NYSE: FUL) from Neutral to Buy with a price target of $80.00, sending shares up more than 1% pre-market on Friday.
The firm said HB Fuller was positioned to deliver strong year-on-year EBITDA growth in fiscal 2025 despite sluggish demand, citing margin expansion supported by lower costs and mix improvements. Analysts noted that EBITDA margin rose 110 basis points year-over-year even as volumes declined, reflecting effective execution in pricing, procurement, portfolio restructuring, and manufacturing optimization.
Engineering Adhesives led growth with a 14% EBITDA increase, while Building Adhesive Solutions also outperformed underlying markets, aided by demand from data center construction and growth in the Middle East. The Hygiene, Health & Consumables segment was weaker but saw partial offset from medical applications.
Seaport projected additional $25 million in price/cost tailwinds in FY26 and roughly $70 million in optimization benefits through FY30. At 7.8x forward EBITDA, below the 3-year average of 9.0x, analysts said the valuation supported the upgrade.
